House hunting can be frustrating. Inventory levels are low, and the homes you do find may not have everything that meets your needs. If you’re not one to compromise on the must-haves or nice-to-haves, building the home of your dreams might be the perfect solution.
If you’ve never been through the home construction process before, you’re probably unsure of where to start. It may seem like a complicated jigsaw puzzle of contractors, permits, and blueprints but take a deep breath and start from the beginning.
Form a Plan
First, call a meeting of the minds – the spouse, the kids, whoever else will be calling this new place home – and sync your priorities. Do this before you start looking for land to build on. Once you know what you want, you’ll have a better idea of where to start looking for property.
Establish a Budget
Once you’ve figured out what type of house you want and where, set a budget. This will take a bit of homework on your part with some research and estimates. You can start by asking your sphere for their experience with builders, architects or designers, real estate agents, and lenders. Having a solid budget will help reduce unexpected expenses during the building process.
Contact a Lender
Now that you have a budget, lock in your financing with a lender. A construction loan may be an option for you. There are different construction loan programs including a short-term lot loan for raw land or an interim financing of the construction loan followed by a permanent mortgage.
Additionally, there is the One-Time Close Construction loan which combines the interim mortgage with a permanent mortgage. The One-Time close has advantages over most other construction loans. It combines the lot, construction, and your permanent loan into a single mortgage, with only one set of closing costs to pay, saving borrowers money. First United Bank Mortgage offers this program in the Greater Dallas Metroplex. This attractive program includes:
- Loan amount up to $1,000,000 (minimum $200.000).
- Interest only on the note rate during construction, then modifies to an amortizing loan based upon the interest rate locked at the beginning of construction.
- 3/1 and 5/1 ARMs and a 30 Year Fixed with a balloon payment in 15 years for loans greater than $417,000.
Your mortgage loan consultant can help you determine which product works best for you. Contact the Decker Group today to find out which program is right for you by calling 972-591-3097.